M60InstitutionaliseInstitutionalisation· Module 4
Succession
Nobody has decided who will lead or own the business next. The question is avoided until it is urgent.
- Institutionalise
- Governance
- Leadership
- ~5 min · Worksheet
The business problem
Succession — of leadership and of ownership — is one of the most frequently avoided questions in founder-led and family businesses. When it becomes urgent through illness, retirement or conflict, the business has no plan and no prepared successor.
Why it matters
Planned succession protects the business, its employees and the family. It takes years to prepare a successor and to structure ownership properly.
What you will learn
- Separate leadership succession from ownership succession
- Identify and develop potential successors
- Consider family, internal and external options
- Plan the timeline and legal steps with advisers
Core questions
- Who could lead the business if I could not, tomorrow and in five years?
- Who will own it, and how?
- What do family members expect, and have we discussed it?
- What advisers do we need?
Work through the module
CaseWhat is happening?
Family transport company, 90 people · Illustrative teaching case
A founder in his late sixties assumes his eldest son will take over. The son works elsewhere and has other plans; a long-serving operations manager is capable but has never been told she is considered. With an adviser, the family separates ownership from leadership: the operations manager is developed as the next managing director and family members remain owners through a board.
DecisionWhat does the leader need to decide?
Assume a family successor, or plan leadership and ownership separately on merit?
FrameworkHow should they think about the problem?
Leadership and ownership succession
Leadership succession asks who will run the business. Ownership succession asks who will own it. They can have different answers. Both need a timeline, a development plan and the right legal and tax advice.
ToolWhat can they use?
Succession planning worksheetWorksheet
- Key roles and emergency cover
- Potential successors and readiness
- Ownership options
- Family discussion points
- Timeline and advisers
ApplicationHow does it apply to their business?
Apply it to your own business:
- Name an emergency successor for your role
- List potential long-term successors
- Schedule a family or owner discussion
ImplementationWhat changes?
What should change in the business:
- Develop successors with real responsibility
- Take professional legal and tax advice on ownership
- Document the plan and review it annually
ReviewDid it work?
How to tell whether the change worked:
- Is there a named emergency successor for each key role?
- Are successors progressing in readiness?
- Is the plan documented and agreed?
After this module you should be able to decide
Assume a family successor, or plan leadership and ownership separately on merit?
And leave with: A succession plan for leadership and ownership.
Sequence · Institutionalisation